Republic Services (RSG) Stock

Republic Services' stock is gaining from fast industrial growth and the use of CNG for its vehicles. However, low liquidity is negatively affecting its performance.

I maintain a 'Buy' recommendation for Republic Services, setting a fair value at $238 per share due to strong growth and strategic plans. The company achieved a 4.2% increase in internal revenue and a 13.8% rise in adjusted EBITDA, with price hikes consistently exceeding cost inflation. Additionally, the new MPower fleet and equipment management system is anticipated to save $20 million each year and improve operational efficiency.

Republic Services (RSG) has received a Zacks Rank #2 (Buy) upgrade, indicating increased confidence in the company's potential earnings. This could lead to a rise in the stock price soon.

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While the revenue and earnings per share (EPS) for Republic Services (RSG) provide insight into its performance for the quarter ending September 2024, it could be helpful to look at how these important figures stack up against Wall Street predictions and last year's results.

In the third quarter, Republic Services, Inc. reported a total revenue growth of 6.5%, with earnings per share of $1.80 and adjusted earnings per share of $1.81. The company also saw an increase in net income margin by 130 basis points and adjusted EBITDA margin by 210 basis points. Additionally, they generated $2.91 billion in cash flow from operations and $1.74 billion in adjusted free cash flow, while being recognized as a Great Place to Work® for the eighth year in a row.

It is anticipated that RSG's revenues in the third quarter of 2024 will increase due to strong performances in different segments.

Assess the anticipated performance of Republic Services (RSG) for the quarter that ended in September 2024. Instead of just focusing on the usual Wall Street revenue and profit predictions, let's take a closer look at some important metrics for a deeper understanding.

Republic Services (RSG) has a strong track record of surprising with its earnings and currently has the right mix of factors that suggest it may exceed expectations in its upcoming quarterly report.